How is the TV advertising cost calculated?

How is the TV advertising cost calculated?

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All advertising companies should know the formula for calculating television advertising costs before engaging in any production company. The Los Angeles production companies should not depend on their TV agency for finding out the cost that will be incurred on their television advertisement.

It is better and helpful if the advertising company itself and already knows how to calculate its own advertising cost for television. This will help the company decide if the cost is right for them or they have to choose other alternatives. For this reason, in this blog we have presented the formula that will definitely help the advertising company to know its cost television.

Calculation for the TV Advertising cost

The first thing you need to know is the CPM, that is, the cost of the ad that is transmitted for 1000 times for this particular channel. The advertising company can know the CPM of the broadcasting channel. Next, the advertising company needs to know the number of viewers who see the show in which the ad will be issued. Once the advertising company determines these two details, you can easily discover the cost of your television ad.

For instance, let us assume that an advertising company wants to buy 10 television sites on a particular television show on one channel. If this television show is viewed by 20,000 viewers on average and the CPM of the television show is $ 11.15, the cost of the television ad can be calculated as follows: Costing of TV advertisement = (Number of Spot) x (Number of viewers) x (CPM of the TV show) = 10 x 20000 x $11.15 = $ 2.230.

This is the accurate and standard way to calculate the costing of a television advertisement. Every TV commercial production companies should determine the cost of the television advertisement before approaching the television agency so that no TV agency can deceive them.

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